GRATs can successfully transfer wealth to the next generation (an individual’s children) free of estate and gift taxes if the rate of return on the assets subject to the transfer exceed the Section 7520 Rate, a rate equal to 120% of the mid-term AFR (see my last post for an explanation on AFRs). The Section 7520 Rate for October 2019 is just 1.8%.

Administered properly, Revocable Living Trusts can assist in the avoidance of costly and time consuming probate administration that can frustrate a person’s beneficiaries for many months, if not years, following death.

Whether a charitable lead annuity trust, a generation-skipping trust or a revocable living trust, the legal team at Silverman Schermer will review your financial situation, assets, and potential risks to determine the most effective strategy for your estate planning needs.